You say “reverse repo” twenty times in the excerpt without saying what the hell a “reverse repo” is. Good job!
Had to look that up myself. Simply put Reverse Repos means banks provide less credit to individuals in the form of mortgages. A Reverse Repo means banks invest money in short term securities with a guaranteed interest rate vice lending the money for higher risks like mortgages during an inflationary economy. Hopefully, my understanding of this is accurate.
>>You say “reverse repo” twenty times in the excerpt without saying what the hell a “reverse repo” is. Good job!
It’s a type of loan. One party buys stuff from another with the agreement to sell it back at a higher price on some future date.
https://www.investopedia.com/terms/r/reverserepurchaseagreement.asp